South Korea expects first energy demand fall in a decade

South Korea’s aggregate energy demand is expected to fall this year, led by a 10.2% drop in liquified natural gas (LNG) consumption, the first time in a decade due to a protracted economic slump, a state think tank said. A report from the Korea Economics Energy Institute forecasts that the country’s energy demand will drop 0.8% to 237.8 million metric tons of oil equivalent this year, compared with 239.8 million in 2008. Reflecting the sluggish demand, sales of the country’s state-owned gas monopoly of Korea Gas Corp. (Kogas) dropped in June for the ninth consecutive month. The report forecasts South Korea’s aggregate energy consumption to recover in 2010, gaining 4.8% from the previous year to 249.3 million metric tons of oil equivalent (MToe) and 3.5% in 2011 to 257.9 million MToe, before expanding 3.3% to 266.5 million MToe in 2012. South Korea, the world’s fifth-largest crude importer and second-biggest LNG buyer, is vulnerable to rises in prices because it imports almost all of its crude and LNG requirements. (July 20, 2009)